Which of the following statements regarding foreign exchange markets is most correct?
A) Foreign exchange markets are "free" of government interferences.
B) Foreign exchange brokers act as agents in currency transactions and often take direct positions in transactions.
C) Anonymity is important for the parties of a brokered currency transaction because knowledge of the parties might affect the quote offered.
D) Currency speculation is not a major concern for central and commercial bank managers, and hence little of the bank's risk management program deals with currency risk.
E) None of the above statements correctly characterize foreign exchange markets.

Question

Quizplus · Accepted Answer

Foreign exchange brokers facilitate transactions between parties while maintaining anonymity to ensure that the identity of the parties does not influence the transaction terms. This is crucial in maintaining fairness and competitiveness in the market.

Which of the Following Statements Regarding Foreign Exchange Markets Is